I'm a Silicon Valley FSBO.

Officially, FSBO stands for For Sale By Owner. Unofficially, it could also be an acronym for something like "Fools Sell By Owner."

In the time it takes me to sell my property -- which, in this market could be days -- I've got to learn what many real estate agents learn, only after many years, of selling homes and representing buyers, after too many deals that don't gel, after long hours in seminars and continuing education courses, and only after picking up after errant FSBOs who couldn't hack it.

Obviously that's not going to happen -- the gaining-the-knowledge part, I mean.

I could fail.

Even though I purchased this same property from a FSBO many years ago and even though as a journalist I have been researching, reporting and writing about buying and selling homes in this market for more than two decades, I'll never gain the knowledge of a real estate agent without becoming one.

Which might not be a bad idea, considering the money I aim to save -- $20,000 or more in commissions. My FSBO listing is a small condo to sell in a market where the median price of single family homes is nearing $725,000, the median price of condos is more than $450,000 and there are so few condos for sale, half of all condos that sold in a recent month were snatched up in an average 7 days.

At least the market is in my favor.

And, hey, once upon a time, members of the local real estate industry chided me as an inadequate real estate writer because for many years, I did not own a home -- as if I had to hold up a bank to be a proficient cop reporter.

So go ahead. Nail me to the cross again, but I've been to the mountain top as a buyer of a FSBO property and I'm about to see the other side of the FSBO transaction.

Shouldn't that also make me a smarter real estate writer?

It already has.

With San Francisco author/broker George Devine's "For Sale By Owner In California" (Nolo.com, $29.99) as my guide book; with "How To Buy A House In California" (Nolo.com, $34.99) as reference material (authored by attorney Ralph Warner, and brokers Devine and Berkeley's Ira Serkes); and with my hard-nosed journalistic habit of persistently pounding away with annoying, but informed questions as my backup, I'm frankly alarmed at what I've learned.

Most buyers are not prepared.

Keep in mind, these buyers may not be representative of buyers in general, but buyers I've met.

First, they come to the table without representation.

That could be a FSBO-generated condition. Given the proceeds of a home sale typically pays the buyer's agent and the seller's agent, and in this sale there will be no such payments, some buyers assume they can't have representation.

Other buyers, like this FSBO, are trying to save a few bucks.

That could be a mistake.

I inform buyers I will pay for a real estate attorney, or other knowledgeable person, to examine the contract and give the rest of the paperwork an eagle eye for the sake of my best interests. Getting it right, especially to avoid legal liability, is key for me.

FSBOs can refuse to pay for the service, but that doesn't mean representation for the buyer isn't crucial. The buyer needs someone who shares their best interest in what's likely to be their most expensive financial transaction to date.

Buyers shopping FSBO listings should have their own real estate attorney, perhaps an exclusive buyer's broker (who represents only buyers and never sellers) or some other real estate broker, agent or professional to represent them.

I'm going to be a pretty hard nut to crack.

Silicon Valley is a strong seller's market. Small condos in my location go for a premium because there are so few of them. We have one of the area's best homeowner's associations, owners represent more than 70 percent of the residents, dues are low in the well-kept complex, the reserves are well-funded, and the HOA has never been involved in defect litigation. I'm not in any rush to sell. I know how to price my property. I know what escrow and other fees I customarily must pay. I know what I will or won't negotiate. I'm up on disclosures, especially home owner association disclosures. I'm after the best price with limited selling costs -- just as any seller would be.

Provided I haven't given away too much, I hold the upper hand.

A buyer's representative, however, is skilled at turning hard nuts into peanut butter. He or she may even consider something I haven't as a valid negotiating point (Guess again.). He or she might also advise a buyer that in addition to being a nut case, I'm a crackpot, I don't know what I'm doing and that the buyer should run from the deal as quickly as possible.

But seriously folks, the buyer's representative also brings to the table experience in a host of related subjects, including market conditions, neighborhood conditions, schools, attractions and other local matters as well as a general overall knowledge about the transaction, all from the buyer's perspective.

Also, serious buyers who are properly represented don't come to the table as look-sees but really have the money in place to negotiate and actually buy a home. A good buyer's representative will tell you, before you go shopping, you'd better have your money motor running.

Chances are, because so many FSBOs are not represented, they don't get that kind of preapproved information so, chances are, FSBOs are more likely to be approached by such buyers.

I understand that as a condition of the FSBO way. It's one of the reasons experts advise against being a FSBO.

Nevertheless, I, like most sellers, FSBO or otherwise, am not going to entertain buyers who don't have a preapproved mortgage, a guarantee from the lender that the money is just waiting for escrow to open.

The preapproval -- in writing from the lender -- means the buyers have had their credit screened, their income examined and other financial factors checked to indicate they are financially ready and serious about buying a home.

Buyers who are not prepared will suffer rejected offers, and wasted time that could net them higher interest rates in the current rising rate market and, perhaps, an even higher home price, should prices continue to rise.

Buyers negotiating with any seller, but especially a FSBO, need to become just as shrewd preparing to buy, preparing a solid offer and being well-represented to spend only what is necessary for a home.

Stay tuned.

Published: April 1, 2005

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Broderick Perkins parlayed a career in old-school journalism into a contemporary digital news service that really hits home. The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services. The DeadlineNews Group includes the Web site, DeadlineNews.Com, offering real estate editorial content and consulting services, and its back shop, the Deadline Newsroom, an open house on news that really hits home. Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News. Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake. He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications. In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for "Nolo's Essential Guide To Buying Your First Home" (Nolo $24.99) and writes real estate television scripts for RealtyTimes.com.